Denta Water and Infra Solutions Files IPO Papers for Rs 150 Crore Fresh Issue

14 Dec 2023 , 10:23 AM

Bangalore-based Denta Water and Infra Solutions have submitted draft papers to SEBI for an initial public offering (IPO), aiming to raise funds through a fresh issue of 75 lakh equity shares. The IPO is focused on water engineering, procurement, and construction (EPC) services, with an emphasis on groundwater recharging projects.

Key IPO Details:

• Offer Details: Only a fresh issue of 75 lakh equity shares.
• Pre-IPO Placement Consideration: The company may consider a pre-IPO placement of 11 lakh equity shares, impacting the fresh issue size if undertaken before filing the red herring prospectus.

Utilization of Funds:

• Working Capital Requirements: Net fresh issue proceeds of Rs 150 crore allocated for working capital requirements.
  • Rs 50 crore in the current fiscal year.
  • Rs 100 crore in the next fiscal year.
• General Corporate Purposes: Remaining funds utilized for general corporate purposes.

Ongoing and Completed Projects:

• As of October 2023, Denta Water has completed 27 projects related to water management infrastructure development.
• 22 ongoing projects with an aggregate contract value of Rs 984.23 crore.
  • Rs 976.7 crore for water management projects.
  • Rs 7.54 crore for infrastructure projects (railways and roadways).

Financial Performance:

• Net profit for FY23: Rs 50.1 crore (up from Rs 38.3 crore in the previous year).
• Revenue from operations for FY23: Rs 174.3 crore (up from Rs 119.6 crore in the previous year).

Order Book and Financial Expertise:

• Outstanding order book: Rs 772.94 crore.
• Completed work: Rs 211.3 crore out of the total contract value of Rs 984.23 crore.

Lead Manager:

• SMC Capitals is the book-running lead manager for the IPO.